Agility Earnings Call Presentation
Full Year 2018 Results
21 February 2019
Disclaimer
This presentation is strictly confidential and is being shown to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose.
This presentation has been prepared by Agility Public Warehousing Company KSCP (“Agility”) and reflects the management’s current expectations or strategy concerning future events and are subject to known and unknown risks and uncertainties. Some of the statements in this presentation constitute "forward-looking statements" that do not directly or exclusively relate to historical facts. These forward-looking statements reflect Agility’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Agility’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Agility undertakes no obligation to revise any such forward-looking statements to reflect any changes to its expectations or any change in circumstances, events, strategy or plans. Because actual results could differ materially from Agility’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this presentation with due care and caution and seek independent advice when evaluating investment decisions concerning Agility. No representation or warranty, express or implied, is made or given by or on behalf of Agility or any of its respective members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this presentation.
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3
Agenda
Financial Highlights 1
Business Segments 2
Agility’s Outlook 3
Q & A 4
2018 highlights
4
• GIL outperformed the market in
both air and ocean volumes
• GIL continues to invest in its
global operating platform,
digital transformation strategy
and its digital logistics platform
• GIL has an ongoing effort to
drive margin improvements in
in its contract logistics business
and new investments were
made in 2018 to support that
initiative
GIL Agility Highlights • Solid group performance in
2018 despite market
challenges
• Double digit EBITDA growth
for the third year in a row
• Exploring different avenues
to maximize value for its
shareholders
• Board of directors
recommendation of 15%
cash dividends and 15%
bonus shares1
• Positive results in 2018 aligned
with the roadmap set for each
company
• Constant focus to improve
efficiency, expand customers
base and geographic reach
• Agility continues to invest in
this group and looks for
opportunities to unlock the
value for shareholders
Infrastructure
1Subject to the approval of the General Assembly
FY 2018 Group financial performance
KD Mn Another year of healthy growth
5
Revenue
1,407.0 1,550.2
2017 2018
+143.2 (+10.2%)
135.2 154.8
2017 2018
+19.6 (+14.5%)
469.9 497.8
2018 2017
+27.9 (+5.9%)
68.5 81.1
2017 2018
+12.6 (+18.4%)
Net Profit
Net Revenue
EBITDA
Margin
32.1% Margin
33.4%
Margin
4.9%
Margin
5.2%
Margin
10.0%
Margin
9.6%
FY 2018 Group financial performance
KD Mn
Revenue contribution by Business Group
91.5 2.1
1,061.6
(75%)
Infra
53.8
FY 2018
345.5
(25%)
FY 2017 GIL Elim.
1,153.1
(74%)
1,550.2
Infra 397.1
(26%)
GIL
1,407.0
6
EBITDA contribution by Business Group
+6.3%
17.5
Infra&Adj.
33.8 (25%)
2.1
FY 2017
154.8
101.5
(75%)
35.9
(23%)
GIL
119.0 (77%)
FY 2018
GIL
Infra
135.2
+17.2% +14.5% +8.6% Y-o-Y
Growth +14.9% +10.2%
• Eliminations are Inter-company revenue
Balance Sheet
KD Mn
7
Maintaining a strong balance sheet
• Healthy balance sheet,
with ability to leverage
future growth
• Constant support and
commitment to its
stakeholders:
1) Shareholders
2) Banks
3) Internal Businesses
Balance sheet FY 2018 FY 2017 Variance %
Current assets 584.8 530.5 54.3 10.2%
Non-Current assets 1,258.3 1,198.5 59.9 5.0%
Total assets 1,843.2 1,728.9 114.2 6.6%
Current liabilities 506.5 553.3 (46.8) (8.5%)
Non-current liabilities 270.5 152.1 118.4 77.9%
Total liabilities 776.9 705.3 71.6 10.1%
Non-controlling Interest 52.7 49.8 2.9 5.8%
Shareholders’ equity 1,013.5 973.8 39.7 4.1%
Highlights
Net Cash (Debt) (135.1) (93.2)
ND / EBITDA 0.9X 0.7X
Statement of Cash Flows
KD Mn
8
27.6%
44.2%
30.1% 34.7%
12.3%
17.3%
16.6% 15.7%
51.6% 17.9%
25.5%
29.9%
8.4%
20.5% 27.8%
19.7%
2016 2018
GIL
2017
100%
Other
Total
Tristar
ALP
75 100 94 269
Investing in the business to capture profitable growth opportunities
12017 Cash flows include the settlement with US government
Cash Flow Statement FY 2018 FY 20171 Variance %
Cash from Operating activities before
changes in working capital
156.8 129.3 27.5 21.3%
Changes in working capital (36.3) (17.0) (19.4) 114%
Other Items (22.7) (47.6) 24.9 52.3%
Net Cash flow from operating
activities
97.7 64.7 33.0 51%
CAPEX (94.0) (100.3) 6.3 6.3%
Other items 1.3 11.3 (10.0) (88.5%)
Net Cash flow from investing
activities
(92.7) (89.0) (3.7) (4.1%)
Free Cash Flow 5.0 (24.3) 29.4 120.7%
Highlights
Conversion ratio (OCF/EBITDA) 63.1 % 47.9%
CAPEX as % of Revenue 6.1% 7.1%
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Business Segments
GIL financial performance – FY 2018
KD Mn
Re
ve
nu
e
EB
ITD
A
& m
arg
ins
Ne
t R
eve
nu
e
& m
arg
ins
1,153.11,061.6
+91.5 (+8.6%)
2018 2017
263.9251.5
+12.4 (+4.9%)
2018 2017
35.933.8
+2.1 (6.3%)
2018 2017 10
Financial Highlights Regional Revenue Contribution
Service Revenue
+9% Vs 2017
+7% Vs 2017
Air Freight volumes Ocean Freight volume
2018
14% (166)
33% (378)
31% (361)
22% (248)
2017
16% (172)
31% (331)
33% (347)
20% (211)
2018
128 (11%)
1.025 (89%)
2017
117 (11%)
944 (89%)
MEA
ASP
EUR
AME
Contract Log.
Freight
18%
4%
14%
-3%
9%
9%
Growth
Growth
Margin
23.7%
Margin
22.9%
Margin
3.1%
Margin
3.2%
Infrastructure Group financial performance – FY 2018
KD Mn
101.5 118.9
EBITDA Revenue
358.2
412.0
+53.8 (+15.0%)
+17.5 (+17.2%)
FY 2017
FY 2018
Solid performance across all key entities
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Development and management of logistics parks across ME and Africa
Transport, storage and distribution of fuels plus chemicals supply chain
Commercial real estate development and management
Ground handling, cargo management aviation and lounge services
Digital customs services and customs operation
Revenue growth Y/Y
6.7% 33.7% -1.9% 17.3% 12.3%
1
1Includes corporate
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Agility’s Outlook
Agility’s Outlook
On Track to Achieve Target, Timeline Could Extend Beyond 2020
EBITDA
$ 800 Mln
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2020 Goal Growth aimed towards our 2020 Target
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Key Guidance given in 2016 FY 2018 2017 A 2016 A
EBITDA Growth Expect to grow at double digit rate 15%
17%
15%
Operating Cash Growth To grow in line with EBITDA growth
KD 98 Mn
(+5%)
KD 93 Mn1
(+15%)
KD 81 Mn
(-23%)
Free Cash Flow Limited due to Capex Program
KD 5 Mln KD 4 Mln1 KD 2 Mn
Net Debt Net Debt to Continue due to levered investments
KD 135 Mn KD 93 Mn KD 45 Mn
Dividends Lower & limited as we are investing for the future 15 fils cash
15%Shares
27% Payout
15 fils cash
15% Shares
28% Payout
15 fils Cash
10% Shares
29% Payout
Cash
/Bala
nce S
heet
Pro
fita
bilit
y
1Adjusted for US Government Settlement
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IFRS-16
1. No distinction between Operating and finance leases going forward.
2. All Qualified Operating leases will be captured in the balance sheet
3. Right of use Asset and a corresponding lease obligation in the balance sheet.
4. Effective 1st Jan 2019. Adjustments will be reflected in the Q1-19 financials.
BALANCE SHEET
Total Assets ~+5%
Total Liabilities ~+12%
Equity No impact
P&L
EBITDA ~+16%
EBIT ~+2%
Net Income to decrease ~ -2%
CASH FLOW No Impact
What has changed? Impact on 2018 numbers if it was implemented
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Agility Value Creation Trajectory
58 79
94 100 100 115
135 155
2012 2011 2014 2013 2017 2016 2015 2018
+15%
27 34
46 51 53 59 69
81
2017 2011 2014 2013 2012 2015 2018 2016
+17%
387
1,438
147
225
96 170
318
160
2013
179 +17%
-272
2016
38
2015
34
17
2017
19
176 +46%
41
2018
137 +18%
Total Dec 11 MCap
-234 -27%
2012
30
30
2014
204 +35% 254
+48%
387
335 +45%
+1,051 (271%)
Value Growth - 842 KD Mn (80%)
Dividends - KD 209 Mn (20%)
Created KD 1,051 Mn in value for our shareholders with 24% IRR since 2011
EBITDA CAGR Net Profit CAGR
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Q&A Session